Amortisation is related to: MCQ with Answer and Explanation

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Amortisation is related to:

A. Tangible assets

B. Current assets

C. Fictitious assets only

D. Intangible assets

Answer: Option D

Solution (By JKExamLibrary)

Amortisation is the systematic write-off of intangible assets like patents, copyrights.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

The 'Indian Audit and Accounts Department' works under:

A. Planning Commission

B. Ministry of Finance

C. Comptroller and Auditor General

D. RBI

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Correct Answer: Option C

Explanation:
The IA&AD is headed by the CAG.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

If opening capital is Rs 1,00,000, closing capital is Rs 1,50,000, and drawings are Rs 20,000, what is the profit for the year assuming no additional capital?

A. Rs 50,000

B. Rs 70,000

C. Rs 1,70,000

D. Rs 30,000

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Correct Answer: Option B

Explanation:
Profit = Closing Capital + Drawings - Opening Capital. Profit = 1,50,000 + 20,000 - 1,00,000 = Rs 70,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

In a bank reconciliation, a 'Direct deposit by customer' into bank not recorded in cash book will:

A. Decrease cash book balance

B. No effect

C. Be adjusted in passbook

D. Increase cash book balance

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Correct Answer: Option D

Explanation:
When starting with cash book balance, direct deposit increases bank balance, so add to cash book to reconcile with passbook.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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